Google recently revealed reorganization plans that include staff layoffs, demonstrating that the tech industry’s wave of layoffs is not slowing down. According to a CNBC story, Ruth Porat, Google’s chief financial officer, reportedly delivered a note to staff members explaining the company’s new initiatives. The layoffs will affect workers in Google’s finance department.
Tech layoffs in 2024:
As 2024 approaches, the IT sector is seeing a wave of layoffs. In the first two weeks of 2024, almost 34,000 people have already lost their jobs, according to the IT layoffs tracker Layoffs. FYI. The layoffs have impacted big businesses like Google, Amazon, and other internet corporations.
This demonstrates the continued financial difficulties the supposedly invincible IT industry faces; last year, companies like Meta, Twitter, and Cisco drastically reduced their workforces.
Adding to the list of IT businesses that have made significant job losses, the employment crisis may last until 2024 if market circumstances don’t change.
At the beginning of the year, several hundred workers from various departments, including hardware, product development, engineering, and AI research, were let go by Alphabet’s Google. Additionally, while the business made “organizational changes” through 2024, Google made considerable layoffs to its advertising sales staff. According to Google CEO Sundar Pichai, layoffs would impact additional functions aimed at boosting productivity.
Microsoft also significantly contributed to the IT industry’s employment losses, shedding 1,900 positions, primarily in its video game division, after acquiring Activision Blizzard. This amounts to around 8% of Microsoft’s whole gaming business. The departure of Blizzard’s chief design officer and president also influenced leadership roles.
Similar actions have been taken by other significant gaming businesses, such as Unity and Riot Games, who have cut staff by 11% and 25%, respectively. These businesses are concentrating their efforts on their main products.
The layoffs affected numerous business divisions of Amazon, including Audible, Prime Video, Twitch, and Buy with Prime teams. Citing a “challenging landscape,” Audible laid off 5% of its workers, while Twitch reorganized and reduced its headcount by 35%, or about 500 people. The e-commerce behemoth reduced “few hundred” positions in its medical business last week.
The industry leaders in retail and food delivery, eBay, Flipkart, and Swiggy, have also reduced staff, albeit slightly—by less than 10%. These layoffs have some justifications, including realigning priorities and cutting costs, but managing overstaffing during the epidemic and being ready for future economic slowdown appears to be the main drivers. Earlier this month, Licious’s meat delivery business let go of 80 workers, or 3% of its total staff, as part of an “operational reset” to emphasize expansion.
In addition to cutting staff, TikTok and Snap have also announced plans to lay off 528 workers, or around 10% of their combined worldwide workforce. Snap’s restructuring focuses on achieving its main targets while making small, steady investments to support future development.
Recently, Grammarly and DocuSign announced layoffs to increase productivity. Grammarly’s emphasis on AI-enabled workplaces resulted in a 23% reduction in staff or about 230 positions. About 440 workers, or 6% of DocuSign’s total workforce, were let go to increase operational and financial effectiveness.
Experts surmise that many businesses are now right-sizing their bloated teams after hiring too many people during the unusual COVID-19 pandemic outbreak. The present wave of layoffs in the IT industry is not a sign of deterioration but rather the outcome of a necessary rebalancing. Despite layoffs elsewhere, important developing industries like artificial intelligence continue to spur hiring.
Data science, AI, and machine learning are fields in which big tech companies like Microsoft, Google, and others are actively pursuing expansion. These businesses are reallocating their resources and looking for skilled professionals to fill essential positions in robotics, neural networks, and generative AI.
In January 2023 alone, over 33,000 job posts were connected to AI, demonstrating the continued high need for these capabilities despite other cutbacks triggered by general economic instability. Organizations striving to spearhead the AI revolution will present new chances for workers to be proficient in future technologies. Even if downsizing makes news, the IT industry is still evolving and expanding because it invests in top talent.
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